A token called MITO22 was created on the Coin Smartchain network, allegedly to support the re-election candidate of Jair Bolsonaro (PL-RJ), in violation of Brazilian electoral legislation.

The website "www.mito22.com" clearly states that it was created by two Brazilians who call themselves soldiers in order to support Bolsonaro in the 2022 elections. Still official.

On the site, the creators describe themselves as defenders of family, morality and life, opposed to communism and aiming to "drive out the left". According to the site, an online platform will be launched for the sale of hats, shirts and other items purchased exclusively with tokens.

Regarding cryptocurrencies, Jair Bolsonaro has already stated that he knows nothing about them, and so does 99% of the Brazilian population.

TSE Rules Say "MITO22" Token May Violate Election Laws

In 2021, meme cryptocurrencies or meme tokens are booming, some of which have no specific use cases. In other words, they are projects created by anonymous individuals that raise money and potentially put investors' assets at risk.

However, it is not clear if this is the case, MITO22 was created by the BscScan network with 22 million units as tokens. Since 232 wallets hold token units, 87% of the tokens are centralized in two addresses, one associated with PancakeSwap, the decentralized exchange on the network.

According to Estadão's investigation with TSE, the High Electoral Court was not aware of the token and said that donations of cryptocurrencies are prohibited in Brazil. In addition, any amount received by a candidate can only be sent from the second half of May.

Neither the Planalto Palace nor Bolsonaro's party, PL, commented on the case in its published report on the creation.

Technical risks of the token

Creating tokens can be done in minutes and the process of listing on exchanges such as PancakeSwap is open to anyone with technical knowledge as it is not dependent on an exchange listing.

That is, not because the token uses the image of the president and that in the brokerage he holds the guarantee. Estadão spoke with the directors of the project, who refused to be named and insisted that this alone does not guarantee trust.

On the other hand, Livecoins spoke with smart contract expert Gustavo Toledo who, in analyzing the technology of the token, said that it is common and there is no evidence of risks in the program, such as rugpull or honeypots.

In addition, he informs that this is apparently configured as meme token and the project does not seek to have much technical basis.

“The proposal is clear that the funds raised from this sale will be used to sell Bolsonaro’s stuff on the site, with no promise of any proceeds.”

However, the token allows its creators to increase transaction fees through the network, which could penalize "MITO22" holders if this issue is triggered. Another danger that could be triggered if the creators wish is the mechanism of blocking addresses, i.e., they could censor the owner user if they wish.

开发人员还拥有一个 Telegram 组,该组拥有超过 30,000 名用于通信的订阅者。 The project's Twitter profile was recently created and does not offer much information, besides following only the profiles of Jair, Carlos and Eduardo Bolsonaro, as well as Elon Musk, CEO of Tesla。

代币 of the myth, our launch will be on 03/05 #criptomoeda #bolsonaro #Criptomonedas pic.twitter.com/jvBFTDLqIq

– Myth22official (@myth22official) February 22, 2022

In a market rife with scams against investors, increasingly complex, the birth of another project linked to a public figure and completely vulnerable to mistrust in an election year, those interested in the matter should be careful about their commitment.